Skip to main content
915 TLDR
Business
1 read

State Tax Policies Impact Workers' Earnings from Tips and Overtime

KTSM••The Associated Press
City skyline representing business and economy news

Want the full story?

Read the complete article at KTSM

Read Original

AI Summary

Recent federal tax changes allowing deductions for tips and overtime are not uniformly adopted across all states. As a result, workers in states that do not align with these federal regulations will still be required to pay state taxes on their earnings from tips and overtime, despite the federal deductions. This discrepancy could significantly affect the take-home pay of many workers who rely on these earnings. It's crucial for employees to understand their state's tax policies to avoid unexpected tax liabilities.

taxes federal tips overtime state

Related Articles

KVIA•May 28

Former BP Chair Claims Cost-Cutting Led to His Dismissal Amid Controversy

Albert Manifold, the recently ousted chairman of BP, has publicly responded to his removal, asserting that his focus on cost-cutting may have contributed to his unpopularity within the company. Dismissed after less than a year, BP cited serious concerns regarding governance and conduct, though Manifold disputes the allegations of bullying and misconduct, calling them 'lies.' He emphasized his efforts to reduce expenses, such as using public transport and avoiding lavish perks, during a time when the company was laying off employees. BP has seen significant leadership instability, with this being the third CEO change since 2019, and its shares have dropped by approximately 6.5% this week, reflecting ongoing turmoil.

Business
1 min read
KVIA•May 28

US Emergency Oil Reserves Dwindle Amid Global Supply Crisis

The Strategic Petroleum Reserve (SPR) in the U.S. is rapidly depleting, with current levels nearing their lowest since the early 1980s. This significant reduction, driven by ongoing geopolitical tensions and a surge in oil exports, has seen reserves drop from approximately 638 million barrels in January 2021 to about 374 million barrels now. The situation is exacerbated by the closure of the Strait of Hormuz, which has disrupted global oil supply. As the U.S. becomes a key supplier for countries in Asia and Europe, the potential for rising gasoline prices looms, especially as the summer demand season approaches. Analysts warn that while limiting exports could temporarily ease domestic prices, it risks destabilizing the global energy market.

Business
1 min read
KVIA•May 27

Google Engineer Accused of Insider Trading on Prediction Market for $1.2 Million

Michele Spagnuolo, a software engineer at Google, faces federal charges for allegedly profiting approximately $1.2 million by using confidential insider information to place bets on the prediction market platform Polymarket. Spagnuolo reportedly accessed internal Google data to predict the most searched individuals of 2025, making trades that included a $613,000 bet against Pope Leo being the most searched person. He has been charged with commodities fraud, wire fraud, and money laundering, and was released on a $2.2 million bond. Google has placed him on leave and is cooperating with law enforcement in the investigation, emphasizing that using confidential information for betting violates company policies.

Business
1 min read
KVIA•May 27

Lululemon Settles Dispute with Founder, Ensures Silence for 18 Months

Lululemon has resolved its conflict with founder Chip Wilson, agreeing to a deal that includes a clause preventing him from publicly criticizing the company for 18 months. This cooperation agreement will see two of Wilson's nominees join the board next month, along with an additional director specializing in apparel by October. Wilson has previously expressed concerns about the brand's direction and leadership, claiming it has lost its appeal. The settlement ends a five-month proxy battle initiated by Wilson, allowing incoming CEO Heidi O’Neill to focus on revitalizing the company, which has seen a 30% drop in stock value this year amid various challenges.

Business
1 min read